Managerial Economics & Business Strategy 8th Edition by Michael Baye,Jeff Prince

Exercise 24

The demand for good X is given by

Research shows that the prices of related goods are given by P y = $6,500 and P z = $100, while the average income of individuals consuming this product is M = $70,000.
a. Indicate whether goods Y and Z are substitutes or complements for good X.
b. Is X an inferior or a normal good?
c. How many units of good X will be purchased when P x = $5,230?
d. Determine the demand function and inverse demand function for good X. Graph the demand curve for good X.